Zacks Investment Research cut shares of Oracle Corporation (NYSE:ORCL) from a hold rating to a sell rating in a research report sent to investors on Tuesday, October 17th.
According to Zacks, “Oracle's first-quarter fiscal 2018 results were impressive. The company is benefiting from significant momentum in the SaaS offerings. The company stated that it is wining market share against salesforce.com and Workday. We believe the company’s growing cloud market share will continue to drive top-line growth in the foreseeable future. Moreover, the upcoming launch of the next-generation autonomous database, which is supported by machine learning, is a key catalyst. However, soft outlook for the second quarter reflects slowing cloud momentum, particualrly due to increasing competition from Microsoft Azure and Amazon Web Services. Moreover, higher investments on PaaS and IaaS will keep margins under pressure in the near term. We note that the stock has underperformed the industry on a year-to-date basis.”
Several other brokerages have also recently commented on ORCL. Wedbush restated an outperform rating and set a $58.00 target price on shares of Oracle Corporation in a report on Friday, September 15th. UBS AG restated a buy rating and set a $57.00 target price (up previously from $52.00) on shares of Oracle Corporation in a report on Friday, September 15th. JPMorgan Chase & Co. set a $55.00 target price on Oracle Corporation and gave the stock a buy rating in a report on Friday, September 15th. Jefferies Group LLC raised their price target on Oracle Corporation from $60.00 to $61.00 and gave the company a buy rating in a report on Friday, September 15th. Finally, Oppenheimer Holdings, Inc. reiterated a hold rating on shares of Oracle Corporation in a report on Friday, September 15th. Two equities research analysts have rated the stock with a sell rating, eleven have given a hold rating, thirty-one have given a buy rating and one has assigned a strong buy rating to the company’s stock. The stock presently has an average rating of Buy and an average price target of $53.50.
Oracle Corporation (NYSE ORCL) traded up 0.60% during midday trading on Tuesday, hitting $50.45. 6,069,212 shares of the stock were exchanged. The stock has a market cap of $210.53 billion, a price-to-earnings ratio of 21.94 and a beta of 1.05. Oracle Corporation has a 12-month low of $37.64 and a 12-month high of $53.14. The firm has a 50 day moving average of $49.32 and a 200-day moving average of $47.95.
Oracle Corporation (NYSE:ORCL) last announced its quarterly earnings results on Thursday, September 14th. The enterprise software provider reported $0.62 earnings per share for the quarter, beating analysts’ consensus estimates of $0.60 by $0.02. Oracle Corporation had a return on equity of 20.55% and a net margin of 25.34%. The firm had revenue of $9.21 billion for the quarter, compared to analysts’ expectations of $9.03 billion. During the same period in the prior year, the business posted $0.55 earnings per share. The business’s revenue was up 7.0% compared to the same quarter last year. On average, equities analysts expect that Oracle Corporation will post $2.94 earnings per share for the current year.
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The company also recently disclosed a quarterly dividend, which was paid on Wednesday, October 25th. Investors of record on Wednesday, October 11th were given a dividend of $0.19 per share. The ex-dividend date was Tuesday, October 10th. This represents a $0.76 dividend on an annualized basis and a yield of 1.52%. Oracle Corporation’s dividend payout ratio is currently 33.19%.
In other Oracle Corporation news, EVP Dorian Daley sold 25,776 shares of the company’s stock in a transaction dated Thursday, September 21st. The stock was sold at an average price of $48.05, for a total value of $1,238,536.80. Following the sale, the executive vice president now owns 30,977 shares in the company, valued at approximately $1,488,444.85. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Hector Garcia-Molina sold 3,750 shares of the company’s stock in a transaction dated Friday, September 15th. The shares were sold at an average price of $50.35, for a total value of $188,812.50. Following the completion of the sale, the director now owns 18,125 shares in the company, valued at approximately $912,593.75. The disclosure for this sale can be found here. Insiders have sold a total of 305,776 shares of company stock worth $14,822,112 in the last 90 days. 29.00% of the stock is currently owned by corporate insiders.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Schwab Charles Investment Management Inc. grew its position in shares of Oracle Corporation by 4.6% in the 2nd quarter. Schwab Charles Investment Management Inc. now owns 10,159,207 shares of the enterprise software provider’s stock valued at $509,383,000 after buying an additional 450,836 shares during the last quarter. Partnervest Advisory Services LLC boosted its position in shares of Oracle Corporation by 0.6% during the 2nd quarter. Partnervest Advisory Services LLC now owns 6,731 shares of the enterprise software provider’s stock valued at $337,000 after purchasing an additional 39 shares in the last quarter. Boston Partners boosted its position in shares of Oracle Corporation by 20.1% during the 1st quarter. Boston Partners now owns 18,234,179 shares of the enterprise software provider’s stock valued at $813,427,000 after purchasing an additional 3,054,765 shares in the last quarter. Lockheed Martin Investment Management Co. raised its stake in Oracle Corporation by 125.6% during the 2nd quarter. Lockheed Martin Investment Management Co. now owns 166,160 shares of the enterprise software provider’s stock worth $8,331,000 after buying an additional 92,500 shares during the period. Finally, LGT Capital Partners LTD. raised its stake in Oracle Corporation by 14.0% during the 2nd quarter. LGT Capital Partners LTD. now owns 623,463 shares of the enterprise software provider’s stock worth $31,260,000 after buying an additional 76,653 shares during the period. Hedge funds and other institutional investors own 57.94% of the company’s stock.
Oracle Corporation Company Profile
Oracle Corporation (Oracle) provides products and services that address all aspects of corporate information technology (IT) environments, including application, platform and infrastructure. The Company’s businesses include cloud and on-premise software, hardware and services. Its cloud and on-premise software business consists of three segments, including cloud software and on-premise software, which includes Software as a Service (SaaS) and Platform as a Service (PaaS) offerings, cloud infrastructure as a service (IaaS) and software license updates and product support.
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